Life Insurance

Aadhaar for life cover scheme for informal sector workers

Aadhaar cards will soon be mandatory for unorganised sector workers to avail government-sponsored life insurance scheme — the Aam Aadmi Bima Yojana. A government gazette issued on August 9, stated that the last date for Aadhaar enrollment for availing the benefits of the scheme is July 31, 2017.

Under the social security scheme — designed for landless people in rural areas and for those in the unorganised sector from below poverty line families — the state government and the Central government pays Rs 100 each for people below the poverty line aged between 18 to 59 years. The scheme provides a cover of Rs 30,000 on natural death, Rs 75,000 on accidental death, Rs Rs 37,500 for partial disability due to accident, and Rs 75,000 for accidents resulting in permanent disability.

The government order stated that those who do not have Aadhaar cards must enrol for one, latest by July 31. And, in lieu of Aadhaar, within the stipulated time, an individual can furnish bank passbook, PAN card, passport, ration card, government ID, voter ID, driving license, caste certificate etc, to avail the scheme.

The Aam Admi Bima Yojana, which provides cover for death and disability to people working under 48 different vocations in the unorganised sector and to people who do not own any land in rural areas, is administered by the Life Insurance Corporation of India (LIC).

As per data furnished by the government, in 2015, the scheme had 4.3 crore beneficiaries across the country, with the maximum number of beneficiaries in Maharashtra (over 80 lakh), Andhra Pradesh (over 77 lakh) and Madhya Pradesh (over 71 lakh).

The scheme, which was merged with the Janashree Bima Yojana (JBY) in 2013, is applicable to either the head of the family or an earning member, but it also provides an add-on benefit where a monthly scholarship of Rs 100 per child is paid every six months to two children per family studying between the ninth and twelfth standard.


According to government data, Aam Admi Bima Yojana had 4.3 crore beneficiaries across the country in 2015.

Of that Maharashtra had over 80 lakh, Andhra Pradesh over 77 lakh, and Madhya Pradesh over 71 lakh.

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